THE TAKEAWAY: German GDP rises 0.2% in Q3, confirming a flash estimate -> Exports rise 1.4% -> Euro trading steady
The German economy’s rate of expansion continued to drop in Q3, as the Euro’s biggest economy struggles with the pressure of the debt crisis.
A final estimate of the German gross domestic product for the third quarter confirmed a flash estimate of 0.2% (seasonally adjusted) expansion. The Q3 GDP growth follows a 0.3% expansion in Q2, which was lower than the 0.5% expansion in Q1. The third quarter’s GDP was 0.9% higher (working day adjusted) than the GDP of Q3 2011, according to the German Federal Statistical Office.
Exports helped keep the German economy growing, as exports were up 1.4% in the third quarter. Imports only grew by 1.0%, giving the country a better trade balance for the quarter. Domestic demand remained unchanged in the third quarter, but private consumption rose 0.3% and government spending increased 0.4%.
The growth in German economy was as previously estimated and therefore did not have a significant impact on Euro trading in currency markets. EURUSD is trading higher for the fifth straight day in today’s session; the pair is currently sitting slightly below 1.2900. The key 1.2900 figure might continue to provide resistance, as it is the 23.6% retracement of the rally from July through September. Support could be provided by a previous support area around 1.2824.
EURUSD 15-minute: November 23, 2012